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High growth

Aims:

To maximise long-term investment returns.

To outperform an average return of CPI plus 4.0% pa (4.5% pa in pension) over rolling 10-year periods.

Risk profile:

Offers the strongest emphasis on growth assets, and therefore carries the highest level of investment risk out of all the diversified portfolios. Short-term fluctuations will occur, but higher investment returns are expected over longer periods. This option is likely to produce a negative return in 4 to 6 years in every 20 years.

Risk Level:

High.

Investor profile:

Will suit investors looking for the highest investment returns over the long-term, but who are prepared to accept extreme fluctuations in investment performance.

Investment strategy

The investment benchmark is 100% growth assets, as shown in the table below:

Growth Assets

Benchmark %

Permitted range %

Australian shares

42

30-60

Overseas shares

42

20-50

Property

7

0-20

Alternative growth*

9

0-20

Total

100%

100%

Defensive Assets

Benchmark %

Permitted range %

Fixed interest

0

0

Cash

0

0

Total

0%

0%

*Alternative growth may include private equity, credit and infrastructure.

Minimum suggested time frame for holding the investment is 10 years.

The Trustee may adjust the asset mix or vary the investment strategy from time to time. This could include varying the mix between growth assets and defensive assets.